Starting a Business

Building and running a business is hard work and time consuming. Before going any further, be sure to ask yourself if you have the skills, experience and commitment to run a business. Talk to friends, family, possible investors and advisors about your business idea and consider their feedback carefully.

Gather relevant information about your potential customers, your competition and your local area. Reviewing economic, resident, workforce and industry data is a great place to start.

A business plan is a written document which details what your business will do and hot it will operate. Financial institutions will want to review your business plan to make lending decisions based on the information you provide. Get more in-depth information on how to write a business plan here.

One you'be developed your business plan, you should have a clear understanding of the amount of money, or capital, you need to start and run your business. There are several options if you need to raise or borrow money. Lean more about funding your business here.

Where shouuld you set up shop? That all depends on your business type and needs. You will need to choose between a home-based business and a commercial location, and assess other important factors such as demographics, safety, traffic, and zoning and building requirements.

Determining your business ownership structure is something you must complete before you register your business. A business can be owned by one or more people, partnerships, corporations or a combination of these. This article provides more in-depth information about choosing the right structure for your business.

A new business needs a new name. A business name is an individual decision you will want to consider carefully. Choose one which reflects your brand and captures the spirit of the business. You'll also want to make sure your business name isn't already being used by someone else. Learn about naming your business here. 

To make your business legal, you'll need to register it. Depending on the type of business you may need to register with several different levels of government. Be proactive and take care of all your registration requirements early in the process. Get more in-depth information on registering your business here. You may also need permits and licences from the federal, provincial/territorial and muncipal governments. Get a list of permits and licences you may need from all three levels of government here. 

Getting on top of your taxes now will help you avoid penalties in the future. If you're going to be in business, you'll want to know which types of business tax apply at the local, provincial and federal levels. It's a good idea to consult a tax professional before you get started. Learn more about federal and provincial taxes here. For information on municipal taxes please connect with us.

Before you commit to a location, sign a lease and open your doors, it's important to determine which permits and licences apply to your business. The licences and permits you need for your business will vary based on your business activities, location and government rules at the local, provicnial and federal levels. For further information on licences and permits please connect with us.

Having the right insurance will protect your business. There are a range of types of business insurance designed to protect your business assets, customers, employees, business owners and earnings. To make sure you have the right insurance, ask an insurer, licensed insurance broker or business advisor for detailed advice.

If you choose to hire employees, you'll have additional responsibilities and requirements to uphold. As an employer, you must consider labor regulations and payroll taxes at the local, provincial and federal levels. Find more inforamtion aobut employees, payroll, and taxes here. 

You're almost ready! Depending on the type and size of your business you will need to finalize banking, suppliers, marketing, operating processes and equipment, as well as technology to keep track of inventory, accounting and staff. Ensur eyou have all the permits and licences that are required from the federal, provincial/territorial and municipal governments in place. If you're unsure, please check with us.

Congratulations! It's time to open for ubsiness. With all the groundwork in place, your focus can now shift to managing and growing your business.

Every company - new of old - benefits from having an up-to-date business plan. Whether it's to secure funding, stay in touch with your market or guide future growth, a business plan is vital for the success for your organization. Research has shown that business owners who undertake planning are far more likely to propsper

The best business plans are short and concise. A business plan shouldn't include every detail of your business; rather it should communicate what matters most. Keeping it succinct will also make it easier for others to read and for you to update regularly. Start by reviewing a range of templates and pick one which works for you. Click here to review a collection of business plan templates.

The Executive Summary is a one to two page overview of the information contained in your business plan. The purpose of the executive summary is to give readers a snapshot of your company and the market, and leaves the reader wanting to know more. Although it's the first section of your business plan, it should be written last.

This is where you describe what your business is all about. Include details such as your businesses objectives, history, vision and location. Also identify the problem your business solves, and explain how your products or services address the issue.

This section demonstrates a viable market exists for your product or service, and shows the reader you know your market well. Your analysis should answer these questions: Who is your ideal customer and how many are there? What market trends are likely to impact your business? Who are your competitors? Why would potential customers choose your product or service, rather than your competitors?

Here's where you provide more detail about what you sell and how it benefits your customers. This is crucial to your business success - if you struggle to explain how you will help your customers, then your business ideas may not be a good one. This section should also explain the features, costs, pricing, location, suppliers and manufacturing (if relevant) associated with your product or service.

In this section, outline how your company will be structured and who will run it. Identify whether your business is owned by one or more people, a partnership or a corporation. Provide a profile of your management team and explain how decisions will be made. Be sure to highlight and relevant experience each executive brings to the management team. If you have an organizational chart, include it.

While this section isn't as detailed as a standalone marketing and sales plan, it should clearly outline how you'll attract and retain customers. You'll also describe how your products or services will be sold (e.g. online, storefront, etc.) and your target market's buying cycle (e.g. when, where and how they like to buy).

This is the most important section in your business plan, so dedicate plenty of time to it. It should include a projected income (profit & loss) statement, balance sheet, and cash flow statement. Most financial plans have monthly projections for the first 12 months, with annual projections for the remaining 2 years. If you're raising money, you should also outline how much funding you'll need over the next 3 years and what you'll use it for.

This optional section is for supplementary documentation required to support the information provided int he main parts of your business plan, or specific information requested by the reader. This might include patents, legal documents, resumes, product pictures, letters of reference, credit histories, licences and permits.

Where should you set up shop? That all depends on your business type and needs. Can you run the business from home or do you need a retail space close to consumers? Do you need an office, workshop, depot or warehouse? Are there municipal rules and regulations that may impact where and how your business can operate?

The right location for your business will depend on who you're selling to, and how they will buy your product or service. If you don't understand your customers and their needs, it will be impossible to make an informed decision about where to open your business. Once you've identified your target customer, review local economic, resident, workforce and industry data to ascertain where thy are and how many. Review the data tools we provide on our website to undertake this research.

Some businesses benefit from nearby competition while others will be disadvantaged by it. Clusters of similar businesses to yours can potentially share customers, infrastructure, suppliers, and distribution networks. However, if a location has too much competition, then you should expand your horizons to a new location. Get more information about conducting a competitive analysis here.

Before you commit to a location, you must ensure it's permissible to operate your business there. Zoning and planning regulations may restrict which properties can be used for commercial purposes, hours of operation, parking requirements, noise levels, signage types, and more. Connect with us to learn more about local land use, planning and building regulations that need to be considered.

The importance of picking a highly visible location, with a high volume of passing trade, depends on the nature of your business. If you're in retail, you'll want your business to be highly visible to the public with plenty of pedestrian and road traffic passing by. Before selecting a location, monitor the volume of traffic at different times of the day, and on different days of the week, to make sure it meets your needs.

Your location should be inviting and easily accessible. Put yourself in the shoes of your target customer. Is the location easy to access by road or public transport? Where will your customers or clients park? Is the facility accessible for people with disabilities? The right location must be easily accessible for your suppliers as well.

Before you select a location for your business, check out the surrounding neighbourhood. Will neighbouring businesses, or services such as schools, hospitals or recreational facilities, attract customers to your business? How successful are the nearby businesses? Is the area 'on the up' or struggling? Finally, make sure the building itself and the surrounding neighbourhood reflects your brand.

How much can you afford to spend on your business location? In addition to the purchase or lease costs associated with selecting a property, there are other potential costs you may need to consider including taxes, utilities, building improvements, maintenance, parking, cleaning and insurance. Get more information about how to budget effectively before leasing a commercial space here. More information about budgeting before buying commercial real estate can be found here.

You'll want to select an area that has the workforce you need. The ability to attract and keep good employees will also be affected by your location. Can your employees get to the location easily? Are there other businesses and facilities nearby which your employees will value?

Future-proof your business by ensuring that you will not outgrow your location too quickly. Just be aware that paying for extra space will use up precious capital, so you'll need to be reasonably sure you'll need it in the near-term. Get more information on choosing the right location for your business here.

Does the space meet your business requirements (e.g. size, facilities, growth potential, access, street visibility, signage, parking, security, broadband, utilities etc.)? Is the physical condition of the building suitable? Is there any visible or structural damage? What internal and external repairs are required, how much will thy cost and who is responsible for paying them? Is the space ideally located with respect to your customer, competitors, vendors and suppliers?

Do the municipal planning controls, building codes or covenants allow you to do what you need to do ont he property? Connect with us to learn more about local land use and planning regulations. Is there potential for expansion or subletting if your business needs change in the future? What is the penalty for terminating your lease early? For peace of mind consider engaging a real estate lawyer to do a title search, review the mortgage agreement and finalize the necesary paperwork.

What insurance coverage is required for the premises? What is covered by your landlord's insurance, and what is your business liable for? It is also important to identify all the possible operational and capital costs associated with the property over time, even the unlikely ones. Can you afford to lease or buy the property you are interested in, even if there are tough times? What taxes apply to the property? Learn more about federal and provincial taxes here. For information on municipal taxes please connect with us.

Keep looking until you find at least two or three potential locations. While this involves extra time and effort, your hard work will pay dividends when negotiating later.

Ask for a pro forma copy of the lease or purchase agreement as soon as possible, and read it in detail. All commercial property deals are unique, so make sure you and your advisors pay attention to the details in the agreement.

Create a document which allows you to compare the relevant details of prospective properties, including: size, price, ongoing expenses plus notes about each property. The notes will come in handy later if you need a tie-breaker when you're making the final decision.

Which licences and permits you require depends on the type of business you're operating, its location and which government rules apply. Start by talking to us to find out what licences, permits and regulations apply to your business. After that, check provincial and federal requirements. If you need help, consider consulting with an experienced business consultant or legal professional. For emore informaton on licences and permits please connect with us.

Getting on top of your taxes now can help you avoid penalties in the future. If you are going to run a successful business, you'll want to know what types of business taxes may apply at the local, provincial and federal levels. It's a good idea to consult with a tax professional to make sure you do it right. Learn more about federal and provincial taxes here. For information on municipal taxes please connect with us.

Keep track of your renewal dates for each licence - it's often easier to renew a licence than it is to apply ofr a new one. Be sure to comply with any display requirements, and don't forget to retain a copy of all applications and forms.

Remember, it's your responsibility as a business owner to obtain all required business licences and permits, from all levels of government. Failing to do this properly is one of the most common mistakes busiensses make, and can lead to expensive penalties, tax issues and potentially lead to the closure of your operation. For further information on licences and permits please connect with us.

The first growth strategy is capturing a larger share of your current market with the products or services you already offer. Ways to do this include lowering your prices, increasing your marketing, expanding distribution channels, improving your product, providing better customer service, and targeting your competitor' customers and distribution channels.

This strategy requires finding a new location to sell your existing product or service. Consider this strategy if existing competition is stiff, or there is little room for growth within the current market. A new market may be found in another neighbourhood, city, province or country. A new market may also be found online, by setting up your own online store or selling through an online marketplace (such as Etsy, eBay or Amazon).

Improving current products and developing new ones can help you gain a bigger market share in your existing market. This strategy is most applicable when technology is changing quickly. To successfully implement this strategy, you must understand market trends and be capable of responding quickly to change.

A diversification strategy is when a business sells new products to new markets. It's almost like starting a new business. As such, it's a higher risk growth strategy requiring considerable time, money and other resources to do well. If you want to diversify your offering, you may choose to expand into areas related or unrelated to your current operations.

Acquiring another business can be an effective way to increase market share, gain new markets or diversify your offering. An acquisition strategy is less risky than a diversification strategy, because you are buying an established operation with existing clients. Refer to the Buying a Business section of this Assistant for more useful information.

Partnering with other companies is another common growth strategy. The partnership may be as simple as an agreement to refer clients to each other. It may also mean sharing distribution, technology or manufacturing to help cut costs, increase efficiencies and generate economies of scale. Get more in-epth information on partnerships here.

If you have a successful business which could be easily replicated, then franchising may be a good way to expand. This strategy may be particularly appealing if you lack the money, people or time to expand the business yourself. Franchisees typically provide the initial investment and perform most of the work required to set up and run the new operation. Learn more about franchising your business here.

There are many different reasons why owners sell their business. Why do you want to sell your business and what do you want to achieve from the transaction? This will be one of the first questions potential buyers will ask. Knowing the answer to this question will also help you make better decisions during the sale process.

To maximize the chance of a successful sale, assemble an advisory team including an accountant, transactions lawyer, close personal advisors and an expert specializing in business valuations for your industry. You may also include a business broker and your banker. Once you have the team together, listen to their advice.

Having a realistic valuation of your business is the key to a prompt sale. Many deals fail because buyers and sellers have completely different opinions of the value of a business. Engaging an experienced valuation expert to document what your business is worth will validate your asking price and ensure you don't price it too high or too low.

Buyers will undertake thorough due diligence on your business and will expect complete transparency about your profitability, growth potential and operational efficiency. Working through a typical buyer's due diligence list ahead of time is a good way to prepare your business for sale. Be sure to get your financial reporting in order and document all aspects of your business as much as possible. Don't forget to spend some time improving the physical aspects of your business as well.

Finding the right buyer for your business takes time. In general, there are three ways to find a buyer. Firstly, you can reach prospective buyers already in your industry through advertising in industry-specific publications. Secondly, you can advertise to those outside your industry via print and web media. Finally, you can approach potential buyers directly. Your advisory team should help to develop a potential buyer list and determine the best method of qualifying and targeting them.

Start by getting a signed letter of intent outlining price, terms and conditions, This letter provides a starting point for negotiations on a final sale agreement. The buyer will then likely undertake a comprehensive due diligence process. Ask the buyer how they will finance the purchase and make sure they are financially sound. Negotiate a detailed final sale agreement with the help of your advisors and clearly agree on any future involvement you'll have with the business. Learn more about selling your business here.

The right type of business to buy will depend on a number of factors. For example, does the business interest you, and will you still be interested in 5 years? Will the business provide the lifestyle you want? Do you have the skills and experience required for the business?

When buying a business, you have the option of purchasing a franchise or an existing independent business. The main difference between these two options is the level of control you'll have over your business. Franchises typically offer more support, guidance and a proven track record, but they can come with restrictive rules on what you can and can't do. Buying an independent business will give you more control, but all aspects of the business rely on you.

Finding the right business will take time and effort. Start by looking at advertisements in trade publications, commercial investment magazines, newspapers and online. Talk to business brokers who specialize in the specific industry you're interested in. Make sure to do your due diligence before you take the next step, as business opportunities can sometimes be misleading.

Before buying a business, you should evaluate its condition and potential. Your due diligence process should include: reviewing the business's complete financial statements for the last 3 to 5 years; talking to existing customers, suppliers and vendors about their relationships with the business; reviewing existing legal contracts; auditing inventory and assets; and ensuring the business has all regulatory permits and licences required. Getting professional legal and accounting help during this step is essential.

Before you can make an offer to buy a business, you need to know how much it's worth. There are numerous ways to value a business. Seek advice from an expert specializing in business valuations, rather than relying just on your accountant or the seller. Investing in an independent valuation report at this stage may save you a lot of money in the future.

At this stage you have all the information ready to make an offer and start negotiations to purchase the business. Your accountant and legal advisor can help you work through the many details to address when negotiating and finalizing the deal. Learn more about buying a business here.